India’s forex reserves fall by $2.16 billion

Reserves had gone up by a total of nearly $8 billion in the prior two weeks

India’s foreign exchange (forex) reserves declined by $2.16 billion to $584.24 billion for the week ended April 21 due to a sharp drop in foreign currency assets, as per the RBI data released on Friday.

The country’s forex reserves dropped after hitting a nine-month high of $586.41 billion for the week ended April 14. The kitty had increased by nearly $8 billion in the first two weeks of April.

As per the weekly statistical supplement released by the RBI, India’s foreign currency assets declined by $2.14 billion to $514.48 billion during the week ended April 21. The foreign currency assets, which is the biggest component of the forex reserves, had jumped by $2.20 billion in the previous week.

Expressed in the US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US currencies like pound, euro and yen held in the forex reserves.

The value of gold reserves declined by $24 million to $46.15 billion during the week under review. India’s reserve position in the International Monetary Fund (IMF) declined by $14 million to $5.17 billion, while the Special Drawing Rights (SDRs) increased by $19 million to $18.43 billion.